IvanSimm

– Posted on 23 April 2023, By Ivan Sim

TESLA’S SUCCESS IN THE MIX MARKETING OF PRODUCTS: Tesla Vehicles

Prior to Elon Musk taking over Tesla, the company had been in existence since 2003, with its cars being produced since 2008 (Vance, 2015). At that time, Tesla was a small company, with limited success. The cars were well-received and purchased by luxury car buyers but were much more expensive than traditional gas cars. In 2008, the company almost went bankrupt, but Elon Musk stepped in to save the company by investing a total of $60 million into building the factory with his own financial resources (Davis, 2010). According to (Armstrong, 2023) years later in 2021, Tesla managed to dominate the EV market and won seven awards, and took over Ford for the first time in 12 years at the annual S&P Global Mobility Automotive Loyalty Awards. Tesla invested heavily in R&D (Research and development) rather than spending millions on traditional marketing (Bode 2023) such as print advertising, newspaper, and TV advertisement.

ENVIROMENTAL FRIENDLY GOALS

Recent buying trends have revealed that Gen Z consumers are leaning towards more eco-friendly products, and this has been influencing the spending choices of other generations (Petro G, 2022). Tesla stated on their website that their mission is to accelerate the world’s transition to sustainable energy, and its solution is to build products that can replace the biggest polluters (Tesla Impact Report, 2021).

TESLA VEHICLES HELP CUSTOMERS SAVE COST ON FUEL

In addition, one of the leading factors in switching from a gasoline-powered to a fully electric vehicle is not only to be better for the environment but will save customers’ costs fuel. Customers can expect to save approximately $700 a year, depending on the model and driving habits (The Impact Investor, 2022).

Tesla hit the headlines again by showcasing a fully electric engine that is efficient, quiet, and delivers immense power. According to (Crider, 2021), the Tesla Model S can accelerate from 0-100 km/h in just 2.1 seconds which proves a point that EV can outperform gasoline-powered vehicles.

One of the boldest technological moves Tesla made was to bring an autopilot system to the vehicle regardless of many critics who doubt its safety capabilities (Metz and Boudette, 2021) while most motor companies only produce ‘driver assist’ technology. The autopilot system is a semi-autonomous driving system that allows the vehicle to automatically accelerate, brake, and steer within lanes on highways.

According to (Bleakley, 2023) The Tesla Model Y has achieved a 5-star safety rating by Euro NCAP which makes it one of the safest cars on the market. It has several factors but one of the main reasons is the placement of the battery that is under the vehicle providing a great center of gravity that decreases the chance of the car rolling over. Other than that, Tesla has built-in impact protection technology on the front and side of the vehicle. All Tesla vehicles are installed with AEB (Automatic Emergency Braking).

VEHICLE DESIGN

Tesla has been revamping the outdated aspects of traditional cars to provide customers with a more efficient and distinct product. For instance, the Model S used to have a front grill, but they removed it because they aren’t powered by combustion engines (Kovach, 2016). Asides from that, their cars now feature unique elements like gliding door handles and expansive glass roofs that ecologically align with their customer’s expectations. These visual cues have made Tesla models stand out from the competition, successfully expanding the scope of their customer base (Shah N.,2022).

THE PRODUCT RANGE

Tesla has a unique tagline made up of all the names of their products which spell out “S3XY CARS”. S – Model S, 3 – Model 3, X – Model X, Y – Model Y, C – CyberTruck, A – ATV(Quadbike which is also known as “Cyberquad”), R – Roadster and S – Semi-truck (DHIMAAN, 2020). The acronym not only stands out but also carries the message that EVs can be charming while not compromising performance and style.

Tesla captivate the world’s attention by introducing a one-of-a-kind unique vehicle called Cybertruck. Tesla managed to generate a total of $ US160 million from every customer placing a $US100 refundable order for the Cybertruck since late 2019 (Mulach, 2022). The Cybertruck are based on 2 self-marketing strategies, which are for the product to make it to headlines and provide better performance than the existing trucks in the market – in which they succeed.

Tesla claims that they aim to design a whole sustainable system from energy generation to storage and to vehicles that work together to amplify their impact (Tesla, 2023). Their product such as the Tesla Powerwall is able to store energy from solar panels – in which they also sell solar panels and solar roofs. They are designed to help reduce grid energy consumption by using solar-generated power.

CUSTOMER FOCUSED PRODUCTS

Tesla CEO, Elon Musk stands out among his peers by being highly active and engaging on social media. Using platforms like Twitter, Musk can connect and interact with fans, customers, and the general public on a personal level. This unique approach highlights his innovative thinking when it comes to marketing and allows for greater exposure and reach. In October 2018, one of Tesla’s customers tweeted to ask Elon Musk about the possibility of installing a “pet mode” in the Tesla. Musk then made it happen by getting the team to work on it immediately (Nedd, 2018).

SUMMARY

In summary, Tesla has successfully disrupted the automotive industry with their innovative technologies and customer-centric approach, paving the way for a new era of transportation. They demonstrated a customer-focused approach by making continuous improvements and paying attention to even the smallest of details based on customer requests. Through this commitment to excellence, Tesla can maintain its ground-breaking status in the industry. Tesla utilized an innovative approach to marketing by leveraging their customers as spokespeople. Through word of mouth and social media, they were able to spread awareness organically, instead of spending millions on traditional print advertising.

– Posted on 23 April 2023, By Ivan Sim

Reference List

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